MIRA INFORM REPORT

 

 

Report Date :

10.05.2013

 

IDENTIFICATION DETAILS

 

Name :

REITMANS (CANADA) LIMITED 

 

 

Registered Office :

250 Sauve Street W., Montreal, Quebec H3L 1Z2

 

 

Country :

Canada

 

 

Year of Establishments:

1926

 

 

Legal Form :

Public Company

 

 

Line of Business :

Subject operates as a ladies’ wear specialty apparel retailer in Canada

 

 

No. of Employees :

11000

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exists


 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

canada ECONOMIC OVERVIEW

 

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly becoming an even larger economic driver with Alberta's oil sands significantly boosting Canada's proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

 

Source : CIA

 

 


Company name & address

 

Company name:            REITMANS (CANADA) LIMITEE (in French)

                                    REITMANS (CANADA) LIMITED (in English)

 

Address:                       250 Sauve Street W., Montreal, Quebec H3L 1Z2 - Canada

Telephone:                    +1 514-384-1140

Fax:                              +1 514-385-2723

Website:                                   www.reitmans.ca

 

 

Company summary

 

Corporate ID#:               3517098

State:                           Federal

Judicial form:                 Public Company (TSX = RET)

Date incorporated:          March 17, 1995

Date founded:               1926

Stock:                           13,440,000 shares issued and outstanding

Value:                           No par value

Name of manager:          Jeremy H. REITMAN

 

 

ACTIVITIES & OPERATIONS

 

Business:

Reitmans (Canada) Limited operates as a ladies’ wear specialty apparel retailer in Canada.

 

It offers sweaters, blouses and shirts, tees and knits, camis and tanks, pants, outerwear, denim, jackets, blazers, dresses, active wear, comfort clothing, capris, skirts, and shorts and skorts; shoes, sandals, and boots; and accessories comprising jewellery, sunglasses, scarves, purses and bags, and belts.

 

The company operates its stores under the Reitmans, Smart Set, RW & CO., Thyme Maternity, Penningtons, Addition Elle, and Cassis banners in malls, retail power centers, strip plazas, and on shopping streets.

 

As of February 02, 2013, it operated 911 stores consisting of 361 Reitmans, 146 Smart Set, 73 RW & CO., 72 Thyme Maternity, 153 Penningtons, and 106 Addition Elle stores.

 

The company also operates an e-commerce Web site.

 

Reitmans (Canada) Limited was founded in 1926 and is based in Montreal, Canada.

 

CAE:    6131

Staff:     11,000

 

Operations & branches:

At above address, we find a large store, warehouse and office, owned.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

1st shareholder:

SHERLEX INVESTMENTS INC.

3300 Highway 7, Ste 702, Vaughan, Ontario L4K 4M3 – Canada

 

2nd shareholder:

DANAMIS INVESMENTS COMPANY

1959 Upper Water Street, Ste 900, Halifax, Nova Scotia B3J 3N2 – Canada

 

3rd shareholder:

HOWELLEN INVESTMENTS LTD

3300 Highway 7, Ste 702, Vaughan, Ontario L4K 4M3 – Canada

 

 

Management:

 

Jeremy H. REITMAN

Chairman and CEO

Mr. Jeremy H. Reitman serves as the Chief Executive Officer of Reitmans Canada Limited. Mr. Reitman serves as the President and Chief Executive Officer of Shirmax Fashions Ltd. He served as the President of Reitmans

Canada Ltd. until June 2010. He has been the Chairman of Reitmans Canada Limited since June 2010. He serves as an Honorary Director at Bank of Montreal. He has been a Director of Reitmans Canada Ltd. since 1975. He serves as director of Shirmax Fashions Ltd. He serves as a Member of the Board of Governors of McGill University. He served as a Director of Bank of Montreal from January 19, 1987 to March 22, 2011.

Mr. Reitman is a lawyer by profession and holds an AB with a major in Economics from Dartmouth College in Hanover, New Hampshire and a B.C.L. from McGill University.

 

Stephen F. REITMAN

President and COO

Mr. Stephen F. Reitman has been the President of Reitmans Canada Ltd., since June 2010. Mr. Reitman serves as an Executive Vice President and Chief Operating Officer of Shirmax Fashions Ltd. He served as the Chief

Operating Officer and Executive Vice President of Reitmans Canada Ltd. from 1984 to June 2010. From 1971 to 1984, he held various management positions with Reitmans.

 

He served as an Executive Vice President of Reitmans Canada Ltd. until June 2010. He has been an Independent Director of Global Brands Acquisition Corp. since October 2007. He has been a Director of Reitmans Canada Ltd., since 1984 and Michael Kors Holdings Ltd. since December 2011. He serves as a Director of Celio International S.A and Shirmax Fashions Ltd. He serves as a Director of Simone Perele Canada Ltd., a wholly owned subsidiary of Simone Perele S.A.

Mr. Reitman received an M.B.A. from the Wharton School of the University of Pennsylvania in 1971.

 

Eric WILLIAMS, CFO

 

 

FINANCIALS

 

On attachment: 10K 2012-2013

              

Currency in
Millions of Canadian Dollars

As of:

Jan 30
2010
CAD

Jan 29
2011
Restated
CAD

Jan 28
2012
Restated
CAD

Feb 02
2013
CAD

TOTAL REVENUES

1,056.5

1,059.0

1,019.4

1,000.5

NET INCOME

67.2

89.0

47.5

26.6

 

Banks:              Bank of Canada

                        Royal Bank of Canada

                       

 

LEGAL FILINGS

 

Legal filings & complaints:

As of today date, there are several filing pending involving the Company as plaintiff of defendant.

 

Secured debts summary:   Several

 

 

COMPANY CREDIT HISTORY

 

Trade references:

Date reported:                March 2013

High credit:                    CAD 50,000+

Now owing:                    0

Past due:                      0

Last purchase:               February 2013

Line of business:            Office supply

Paying status:               On terms

 

Date reported:                March 2013

High credit:                    CAD 12,500,000+

Now owing:                    0

Past due:                      0

Last purchase:               February 2013

Line of business:            Payroll

Paying status:               As agreed

 

Date reported:                March 2013

High credit:                    CAD 20,000+

Now owing:                    0

Past due:                      0

Last purchase:               February 2013

Line of business:            Telecommunications

Paying status:               On terms

 

Domestic credit history:

National Credit Bureaus gave a satisfying credit rating.

 

International credit history:

Payments of imports are currently made with an average of 2 days beyond terms.

 

Other comments:

The Company maintains its business.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on December 3, 2012.

The risk is low.

 

Our opinion:

A business connection may be conducted.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.24

UK Pound

1

Rs.84.30

Euro

1

Rs.71.36

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.